StoneCo Analyst Expectations: Bullish Sentiments Amidst Adjusted Ratings and Price Targets

Analyst expectations for StoneCo's future are mixed, with 4 analysts providing ratings, including a mix of bullish and bearish perspectives. The average 12-month price target is $15.38, with a high estimate of $18.50 and a low estimate of $13.00. Analysts have raised their ratings and price targets for StoneCo, with a recent increase of 24.23% from the previous average price target.

Analyst expectations for StoneCo Ltd. (STNE) are mixed, with four analysts providing ratings, including a mix of bullish and bearish perspectives. The average 12-month price target is $15.38, with a high estimate of $18.50 and a low estimate of $13.00. Analysts have raised their ratings and price targets for StoneCo, with a recent increase of 24.23% from the previous average price target.

In the latest quarter, analysts from JP Morgan, Barclays, and Citigroup provided ratings for StoneCo. Yuri Fernandes of JP Morgan raised the rating to Overweight with a price target of $18.50. John Coffey of Barclays raised the rating to Equal-Weight with a price target of $15.00. Gustavo Schroden of Citigroup raised the rating to Buy with a price target of $15.00. The recent changes reflect a positive outlook on the company's future performance.

StoneCo Ltd. is a provider of financial technology solutions, serving medium and small businesses (MSMBs) with fair pricing and customer experience. The company's Stone Business Model combines end-to-end, cloud-based technology platforms, differentiated hyper-local and integrated distribution approaches, and white-glove, on-demand customer service. The Financial Services segment and the Software segment are the primary revenue drivers for the company.

The company's market capitalization is restricted, indicating a smaller scale relative to industry peers. However, StoneCo displayed positive revenue growth of approximately 18.08% in the last three months, outperforming the average growth rate in the Financials sector. The company's net margin is also a standout performer, exceeding industry averages at 14.78%.

Despite these positive indicators, StoneCo's Return on Equity (ROE) and Return on Assets (ROA) lag behind industry averages, suggesting challenges in maximizing returns on equity capital and efficiently utilizing assets. The company's debt-to-equity ratio is below industry norms, indicating a sound financial structure.

Investors should closely monitor StoneCo's earnings report, scheduled for August 7, 2025, to gain insights into the company's financial performance and future prospects. Analysts expect StoneCo to post earnings of $0.34 per share, marking year-over-year growth of 13.33%. The consensus estimate for quarterly revenue is $671.49 million, up 9.16% from the year-ago period.

References:
[1] https://finance.yahoo.com/news/heres-why-stoneco-ltd-stne-215002163.html
[2] https://www.nasdaq.com/articles/analyst-expectations-stonecos-future